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Market Pulse

Market Pulse August 2015

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ETFs are hybrid investment products, with many of the investment features of mutual funds married to the trading features of common stocks. Like in a mutual fund, an investor buys shares in an ETF to own a proportional interest in the pooled assets, which are generally managed by an investment adviser for a fee. But unlike mutual fund shares, ETF shares are traded in continuous markets on global stock exchanges, can be bought and sold through brokerage accounts, and have continuous pricing and liquidity throughout the trading day. Thus, they can be margined, lent, shorted, or subjected to any other strategy used by sophisticated equity investors.